YP75: Shortage of mortgages hitting recovery of housing market

The York-based housebuilder completed more than 9,000 homes last year with an average selling price of 167,000.

The 6 per cent increase in average sale price was in part due to a higher completion rate of large home sales compared to apartments, where prices remain under pressure.

Despite the rise over 2010, the company expects house prices to remain static over the coming year.

Overall, the group believes profits for 2010 will come in at the top end of market expectations, and the shares ended the week unchanged at 437p.

Another company heavily tied to construction markets is Sheffield-based SIG. The group, which provides roofing and insulation products to European markets, blamed the severe winter weather for an expected 2 per cent fall in sales compared to last year. Despite the forecast sales fall, SIG continues to expect pre-tax profit to meet market expectations although warned that planned public sector spending cuts will likely hurt construction activity levels in 2011.

WM Morrison reported a 4.7 per cent rise in total sales for the six-week period to January 2 as it stated that full-year expectations remain unchanged.

Despite the disruptive weather over the Christmas period, like-for-like sales increased by 1 per cent, excluding fuel and VAT.

The company also announced the purchase of 16 former Netto UK stores, from Leeds-based rival Asda, at a cost of 28.1m.

The handover is set to commence in March 2011 with conversion to the Morrisons' branding expected to be completed within three months.

UK doorstep lender Provident Financial expects pre-tax profit

to come in slightly ahead of market consensus following strong sales in the run-up to Christmas. The company also announced a 100m loan with an M&G investment fund, the terms of which are stated to be in line with current funding costs of around 8 per cent.

First-quarter profitability has increased on a like-for-like basis at Hessle-based Fenner.

The company, which distributes conveyer belting and reinforced polymer products, expects to make further progress in the second quarter, adding that the current order book is strong, particularly in the conveyer belting division.

Activity levels at the advanced engineered products division are ahead of those experienced prior to the global recession and margins remain consistent with those witnessed at the end of the last financial year.

David Cadwallader, Investment Manager, Brewin Dolphin.